PN Gadgil Jewellers, the second-largest organized jewellery retailer in Maharashtra, has submitted its draft red herring prospectus to the Securities and Exchange Board of India (Sebi) to raise capital through an Initial Public Offering (IPO).
The company’s IPO includes a fresh equity issuance of INR 850 crore and an offer for sale (OFS) of INR 250 crore. Through the OFS, promoter SVG Business Trust will sell a portion of its equity.
The proceeds from the IPO are intended to be allocated for establishing 12 stores in Maharashtra, repaying debt, and fulfilling other general corporate objectives.
As of January, PN Gadgil Jewellers ranks as the second-largest among the prominent organized jewellery retailers in Maharashtra based on the number of stores.
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The company is also the fastest-growing jewellery brand among the major organized jewellery retailers in India, as evidenced by its revenue growth from FY21 to FY23.
Between FY21 and FY23, PN Gadgil recorded an EBITDA growth of 56.5% and also achieved the highest revenue per square foot in India in FY23.
By December 2023, the company had grown to 33 locations, with a total retail space of about 95,885 square feet. The locations are spread among 18 cities in Maharashtra and Goa, as well as one in the United States.
Furthermore, Gadgil introduced its mobile application “PNG Jewellers” in March 2022. This application enables them to keep customers informed about new designs and collections while acquainting them with the product portfolio.
In FY23, the company saw a significant increase in revenue from operations, rising 76% year-on-year to INR 4,507 crore, while the profit after tax (PAT) grew by 35% to INR 94 crore. For the period ending September 2023, revenue from operations was INR 2,628 crore, with PAT at INR 4.37 crore.
The issue’s book-running lead managers are BOB Capital Markets, Nuvama Wealth Management (which formerly operated as Edelweiss Securities), and Motilal Oswal Investment Advisors.
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